Required information Problem 8-20A (Algo) Effect of business structure on financial statements LO 8-1 [The following information applies to the questions displayed below.) Cascade Company was started on January 1, Year 1, when it acquired $168,000 cash from the owners. During Year 1, the company earned cash revenues of $85,400 and incurred cash expenses of $64,200. The company also paid cash distributions of $7,000 Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions, (Consider each assumption separately.) Problem 8-20A (Algo) Part b b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $58,800 and Beth Cascade invested $109,200 of the $168,000 cash that was used to start the business. Beth was expected to assume the vast majority of th responsibility for operating the business. The partnership agreement called for Beth to receive 65 percent of the profits and Carl get the remaining 35 percent. With regard to the $7,000 distribution, Beth withdrew $4,550 from the business and Carl withdrew $2,450 Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows BB 3 invested $109,200 of the $168,000 cash that was used to start the business. Beth was expe responsibility for operating the business. The partnership agreement called for Beth to rece get the remaining 35 percent. With regard to the $7,000 distribution, Beth withdrew $4,550 $2,450. Complete this question by entering your answers in the tabs below. es Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepar a capital statement for Year 1. (Deductions should be indicated by a minus sign.) CASCADE COMPANY Capital Statement For the Year Ended December 31, Year 1 Beginning capital balance Plus: Capital acquired from partners Plus: Net income Less: Withdrawal by partners Ending capital balance $ 0 168,000 168,000